MANILA, Philippines—The Development Bank of the Philippines is encouraging local government units to tap its P10-billion lending facility to improve public education services in their areas.
In a statement, DBP said the lending facility, called the Financing for Public Basic Education (FPBE), is aimed at helping improve the delivery of education services, which bank officials believe are crucial for achieving the country’s medium- to long-term development goals.
DBP President Francisco del Rosario Jr. said LGUs, especially low-income ones, are urged to take advantage of the available financing to invest in infrastructure for public schools.
“We will prioritize regions that are most in need of school facilities such as Central Luzon, Southern Luzon, Bicol, Central Visayas, Eastern Visayas and Southern Mindanao,” Del Rosario said.
LGUs may use the fund to buy equipment and school materials, or to put up infrastructure for public school. They may also use the money to buy land for the construction of classrooms and other education facilities, DBP said.
Borrowers may secure an amount of loan equivalent to 90 percent of project cost, according to DBP. Loans under the FPBE are payable in 10 years.
DBP said the lending facility is consistent with its development mandate.
Most developmental agencies, like DBP, implement programs to help stimulate the economy, especially after its growth significantly slowed down last year.
The economy, measured in terms of gross domestic product, grew by 3.6 percent in the first three quarters of 2011. It is expected to have posted a full-year growth of 4 percent or less, much slower than the 7.6 percent registered in 2010.